business expenses

One month then payroll

Dear Mr Newspaperman,

Your recent article in the Guardian reminds me of an essay I wrote at school in Year 10. I too failed to do proper research and thought that sensationalism would save me from the wrath of people who know better. Alas in Year 10 the consequences were that I got a grade D for some shoddy work. You on the other hand have caused needless criticism of hardworking freelancers and contractors, who for a number of important reasons choose to operate their businesses through small companies.

Claiming tax relief for business expenses as a flexible worker is not exploiting a loophole, any more than your using any form of tax relief is a loophole. For your article to be taken seriously it needs to be factually and emotionally accurate.

Ever since I was born Her Majesty’s Government has given me an annual Personal Allowance to be used before I start paying income taxes, but does my accepting or using this allowance in times of austerity make me a tax dodger? Am I a bad person for using my tax free allowances? So what is the difference?!

If you or the other hacks in offices along the corridor, can show me that you don’t claim tax relief on items you are perfectly entitled to, for the reasons they exist in the first place, I will send you £1.

The other thought that struck me is that rather than reporting a ‘scoop’ from an unnamed government source you are being used as puppet. A scaremonger designed to upset the economy and create unfair, unjustified, unwarranted, unhelpful, unnecessary and undefended animosity between different categories of worker. Well I am sorry to disappoint you. The UK contractor and freelancer workforce is stronger than that, they are bold and proud and like many others have placed their trust in Cameron’s boys and girls to steer the economy further into the Black.

If the flexible workers of the UK are let down it is not because they shirk hard work, neither is it because the vast majority do not fully respect tax legislation. It will once again be because the people advising David and George have failed to do their homework properly.

If I read your article as a Year 10 assessment, my advice would be to make sure you do more research in future, don’t get your words mixed up and worst of all don’t be so easily influenced by the other boys. The only level playing field they are used to is the topography in the grounds of their public school! 4/10.

Paul Gough

Another flawed proposal

This latest reported plan for ‘one-month-then-payroll’ has already received huge amounts of criticism from IPSE, FCSA and the contractor community at large. Of course, with the Autumn Statement less than two weeks away we will be posting our reactions and summaries with the issues affecting contractors. Now is a good time to make sure you have a contractor accountant you can trust – with Intouch Accounting you get everything you need to run your company efficiently, including unlimited advice from your Personal Accountant to make sure you’re up to date with everything you need to know and do.

This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.

Don’t let the house of horrors spook you!

Forget The Shining, American Psycho or The Exorcist, sometimes the worries that contracting can cause can be far scarier! But fear not, Intouch Accounting are here to help guide you through each and every process, without the sleepless nights, or worrying if the Taxman is hiding under your bed…

Let’s take a look at some of the main concerns Limited Company contractors have and see why they’re not so scary after all:

IR35

Whether you’re a seasoned contractor or just starting out, IR35 should always be a consideration when starting a new contract. Whilst you should never let it stop you from contracting, it is something you need to understand and have respect for. Our clients don’t need to worry, as our monthly all inclusive service fee of £98 +VAT includes unlimited IR35 contract risk assessments.

Don’t let the fear of ‘what if’ stop you from contracting! In our ebrief: IR35 – the proposed changes we outline exactly what IR35 is, how it could affect you and the proposed changes for April 2016.

Claiming expenses

Do you worry about claiming for business expenses, for fear of not remaining compliant? Or do you hold back from purchasing equipment that you need for business, in case you can’t claim for it? Your contractor accountant will be able to give you advice on what you can and can’t claim. Intouch clients can ask their Personal Accountant about claiming expenses whenever they wish.

The ways in which you can claim for expenses will change in April 2016. Don’t wait until then; download our ebrief to get up to speed now.

HMRC Investigations

Probably one of the scariest things a contractor can face is a dreaded letter from HMRC announcing an investigation! You’re bound to feel some apprehension if you do receive one.

Intouch clients can stay cool as a cucumber, as professional fee protection service is included within their monthly fee. That means that if HMRC do decide to investigate them, they’re covered for up to £75,000 of accountancy fees per claim and don’t have to worry about the time or money it will cost. They simply forward their letter onto their Personal Accountant and they will do the rest! Wondering what the other benefits of fee protection service are and why you need it? Take a look at our blog.

Travel and Subsistence (T&S)

You’re probably going to have to travel to your client’s offices and that costs money. And what about the other possible expenses you’ll incur, like hotel rooms or food? These worries could put you off taking a contract, especially if you think it’s going to cost you an arm and leg.

Don’t panic! Whilst T&S can be a complex area to get your head around, your Personal Accountant will be able to guide you on what you can claim and the best way to do so. Like expenses, the way in which you can claim for T&S will change in April 2016. Take a look at our ebrief to get up to speed with the proposals HMRC are suggesting.

Just Starting Out

Considering contracting or have just started out and worried about what’s lurking behind every corner? We appreciate how daunting it can be when you’re new to the contracting game, but by having the right support behind you it can turn from a nightmare into a dream.

Why not take a look at the Contractor UK Forum, where you can ask other like-minded contractors questions and get a feel for what it’s like when contracting. If there are other topics you’ve heard of and want to find out more, or simply want access to a whole host of contractor resources, take a look around our website for useful videos and blogs.

Don’t let the thought of contracting spook you! Intouch Accounting are here to help you on your journey, by ensuring that you are able to face each challenge confidently and compliantly. Give our team a call on 01202 375 562 to discuss any aspect of contracting and to get you started.

This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.